Me Yves Joli-Cœur and the RGCQ: Transparency at the Heart of Condominium Reforms

In a context where condominium ownership in Quebec faces major challenges in terms of transparency and maintenance work financing, Me Yves Joli-Cœur, emeritus lawyer and president of the Quebec Association of Managers and Co-owners (RGCQ), was recently highlighted in a La Presse article by journalist Marie-Ève Fournier. The article, titled "Transparency Should Shake Up Condo Prices," emphasizes the importance of reforms introduced by Bill 16 and their potential impact on the real estate market. By addressing structural deficiencies in condominium association management, these legislative changes mark a major turning point in ensuring the sustainability and value of condominium buildings in Quebec.

Towards Responsible Management of Condominium Buildings

The average age of condominium buildings in Quebec, estimated at about 30 years according to the RGCQ, underscores the urgency of revising current practices in contingency fund management. These funds, intended to cover major work costs, are often insufficient, placing many condominium associations in a precarious financial position. Me Joli-Cœur, in his leadership role at RGCQ and as founder of Condolegal.com, has been a strong advocate for the need for rigorous contingency fund studies and 25-year maintenance plans, now mandatory thanks to Bill 16.

Co-owners' Challenges Facing Insufficient Contingency Funds

In his interview, Me Joli-Cœur predicts that buildings without proper asset management plans will be "downgraded" in the market. This means that affected properties could experience a significant decrease in value, creating additional pressure for condominiums that haven't yet adopted such measures. The financial consequences for owners will be substantial, particularly for those who must fill significant capitalization deficits. Me Joli-Cœur insists that transparency, although it may seem constraining, is essential to avoid situations where buyers face unexpected bills.

The article also highlights that nearly 40% of condominium buildings don't have sufficient contingency funds. This reality, long denounced by Me Joli-Cœur, exposes condominiums to major economic risks. "We're talking about a distressed [condo] stock in Quebec," he laments. The implementation of management plans and increased transparency should prevent these problems from worsening.

The issue of financial equity among co-owners is at the heart of this reform. As the article points out, some co-owners benefit from common areas for years without contributing sufficiently to the contingency fund, leaving new arrivals to bear significant expenses. Bill 16 aims to restore this balance by imposing clear and binding rules for asset management.

Solutions for a Sustainable Future

Moreover, condominiums that choose to ignore these new obligations could face soaring management costs and insurance premiums. Me Joli-Cœur reminds that these reforms are not just administrative formalities. They aim to preserve property values and protect owners from serious financial consequences.

The La Presse article also mentions practical solutions discussed for condominium associations, recommending not to wait for the law to take effect before undertaking their contingency fund studies. This proactive approach could reduce costs and minimize negative impacts on current and future co-owners. Additionally, implementing financial management strategies, such as investing contingency funds in high-yield accounts, is essential to optimize available resources.

Conclusion: A Proactive Approach to Protect Condominium Ownership

Thanks to Bill 16 and the leadership of the Quebec Association of Managers and Co-owners (RGCQ), condominium management in Quebec is undergoing transformation. By adopting proactive strategies such as contingency fund studies and long-term maintenance plans, condominium associations can better anticipate future challenges and protect their members.

To learn more about this topic, we invite you to read Marie-Ève Fournier's article, published in La Presse and titled "Transparency Should Shake Up Condo Prices." Access the complete article by following this link: Link to article.